manila. kathmandu and jakarta. >> what is kathmandu. >> he was fast on that one. he knew that category. let's do president sham rhyme time for 200 please. >> here we go. bram... pack animals? >> what is obama's lamb as. >> obama's lamas. that's what this category is all about. >> reporter: it amazed me how watson gets all the jokes the word play and the puns that are hallmarks of jeopardy. and watson gets smarter with each answer. >> it learns based on the right answers how to adjust its interpretation. and now from not being confident, it starts to get more confident in the right answers. >> watson surprises snu. >> absolutely. in fact, you know, people say why did he get that wrong? i don't know. >> reporter: computers that rern, understand and even surprise us? what could go wrong with that? >> do you read me? do you read me, hal? >> affirmative, dave. i read you. >> reporter: oh, yeah. there is that. a machine that becomes a psychopathic murderer. >> open the doors for me, al. >> i'm sorry, dif. i'm afraid wra do that. >> artificial intelligence can be destruc